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Dillard's (DDS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Dillard's (DDS - Free Report) closed at $185.10, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the department store operator had gained 2.23% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.42% and lagged the S&P 500's gain of 3.28% in that time.

DDS will be looking to display strength as it nears its next earnings release. In that report, analysts expect DDS to post earnings of $2.45 per share. This would mark year-over-year growth of 762.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, up 36.89% from the year-ago period.

DDS's full-year Zacks Consensus Estimates are calling for earnings of $15.17 per share and revenue of $5.82 billion. These results would represent year-over-year changes of +655.68% and +35.21%, respectively.

It is also important to note the recent changes to analyst estimates for DDS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DDS currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DDS is currently trading at a Forward P/E ratio of 12.07. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.07.

It is also worth noting that DDS currently has a PEG ratio of 0.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Regional Department Stores industry currently had an average PEG ratio of 0.68 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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